Peru Holds Key Rate as Policymakers Weigh Risks to Growth (1)

Peru held interest rates unchanged as the central bank gauges whether US tariff policy will jeopardize its combination of the fastest growth and the lowest inflation among Latin America’s major economies.

Policymakers held borrowing costs at 4.5% on Thursday, as expected by 13 of 14 economists surveyed by Bloomberg. Just one analyst forecast a second straight quarter-point rate reduction to 4.25%.

“Most indicators and expectations remained in the optimistic range, in a context where economic activity is hovering around its potential level,” the bank said in its policy statement. “The outlook for global activity has deteriorated as a result ...